adios
01-07-2004, 07:54 AM
It's no secret that the US $ has been losing value against the major currencies of the world big time over the past year or two. The Chineese and Japaneese central banks have been intervening in the currency markets to support the US $ since they import so much to the US. They've been financing their share of the US deficit by purchasing US treasuries with the US $ they purchase. Rumors yesterday that the ECB (EU central bank) was starting to buy US $ to support the US $ against the Euro. The speculation that I've read and heard is that the ECB will also become a larger purchaser of US treasuries. France and Germany are key EU members so indirectly they'll be funding the war in Iraq if this scenario plays out.